It is time to stop buying Ryanair Holdings PLC (LSE:RYA) shares, that's according to Goldman Sachs, which has cut its rating on the airline to ‘Neutral’, citing a 'normalisation' in valuation and a softer near-term earnings outlook.
Analysts at the American bank said catalysts that previously supported the shares have now played out, whilst medium-term growth expectations remain intact.
As a result, Goldman says risk-reward over the next twelve months is less compelling compared with the wider transport sector.
In a note, Goldman added that it expects Ryanair to report net profit of €1.63 billion, below consensus forecasts of around €1.70 billion. Full-year FY26 profit is predicted at about €2.2 billion, which would be broadly in line with market estimates.
For FY27, Goldman has reduced its forecast by 4% to €2.30 billion, which is around 3-4% below consensus.
The Goldman downgrade comes amid weaker-than-expected fare data for summer 2025 and expectations of higher costs related to sustainable aviation fuel.
Goldman lowered its 12-month price target to €27.50, from €29.50, and yet that still implies upside of around 14% from the current price of around €23.50. At the target, Ryanair shares would trade on around 13 times forward earnings, close to the long-term average multiple.